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HB 2847 (Darby) Relating to the jurisdiction of the Railroad Commission of Texas over and a study of the production, pipeline transportation, and storage of hydrogen

  • State policy frameworks relating to hydrogen are essential for regional applications for hydrogen hub projects authorized under the US Infrastructure Investment and Jobs Act (IIJA) which authorizes over $8 billion for the creation of regional clean hydrogen hubs across the nation
  • The bill instructs that the RRC has jurisdiction over “pipeline transportation and underground storage of hydrogen” 
  • This change reinforces RRC’s existing authority over hydrogen pipelines specified in Chapter 111, Natural Resources Code; the change extends this oversight to the subsurface geological storage of hydrogen gas
  • The bill also establishes the Texas Hydrogen Production Policy Council to make recommendations relating to RRC’s policy framework over the hydrogen industry in Texas, monitor regional applications for clean hydrogen hubs authorized under IIJA, and develop recommendations regarding the oversight and regulation of hydrogen by RRC
  • The Council may also make recommendations relating to RRC rules or changes in statute for hydrogen production, conveyance, and storage
  • The Council is comprised of the RRC Chair and up to 11 appointees by the RRC and expires on 9/1/2030
  • HB 2847 passed out of both chambers and is now heading to the Governor’s desk

HB 3837 (Geren) Relating to the designation of advanced clean energy projects

  • The bill addresses the lapse of statutory designations related to advanced clean energy projects by removing the date parameters, modifying certain project qualifications, and specifying the type of permit capture requirements that would allow projects to qualify as advanced clean energy projects
  • This legislation makes Texas more competitive in the race to develop advanced manufacturing facilities including those focused on the development of dense natural resources, specifically for SAF based on natural gas that is refined in Texas, shipped via our current infrastructure, and consumed on a global scale
  • Includes hydrogen derived from such fuels, in the generation of electricity or the creation of liquid fuels outside of the existing fuel production infrastructure while co-generating
  • HB 3837 passed out of both chambers and is now heading to the Governor’s desk  

HB 3390 (Hunter) Relating to the provision of information regarding distributed generation and certain electrical loads

  • The bill allows distributed generation to be included in ERCOT analysis in connection with grid analysis
  • HB 3390 passed out of both chambers and is now heading to the Governor’s desk

HB 4018 (Ashby) Relating to the use of Parks and Wildlife Department land for carbon sequestration or similar ecosystem services projects

  • The bill allows TPWD to enter into an agreement for the purpose of developing a carbon sequestration or similar ecosystem services project on department land
  • HB 4018 passed out of both chambers and is now heading to the Governor’s desk

HB 4885 (Landgraf) Relating to programs established and funded under the Texas emissions reduction plan

  • The bill establishes the Texas hydrogen infrastructure, vehicle, and equipment grant program, and makes several adjustments to funding percentages across TERP including an increase from 3 to 8 percent for hydrogen-related assets
  • The bill also adjusts TCEQ program administration funding so that it is based on a percentage of the TERP fund, closely linking the workforce needed for administration to the relative size and usage of the fund
  • Finally, the bill updates several programs to reflect new technologies and opportunities to improve the state implementation plan (SIP)
  • HB 4885 passed out of both chambers and is now heading to the Governor’s desk

SB 785 (Birdwell) Relating to the ownership of and certain insurance policy provisions regarding the geothermal energy and associated resources below the surface of land

  • The bill establishes that geothermal energy and associated resources are owned by a landowner and they are entitled to drill for or produce those resources
  • Title insurance companies may exempt geothermal energy and associated resources below the surface from coverage
  • This bill does not apply to minerals dissolved or otherwise contained in groundwater, including in hot brines; change existing law regarding oil, gas, or mineral extraction regardless of its heat or energy potential; change existing law regarding the rights of the dominant and servient estate; or apply to ownership/use of groundwater
  • SB 785 has been passed by both chambers and is heading to the Governor’s desk

SB 1015 (King) Relating to periodic rate adjustments by electric utilities. Senate concurs in House amendment(s) reported 5/25

  • Change to distribution cost recovery factor to allow utilities to file a DCRF twice annually; process is already in place for transmission costs
  • Reiterates a municipality’s jurisdiction over rates and services and those with a pending base rate filing may file a DCRF under certain circumstance
  • SB 1015 passed both chamber and is now heading to the Governor’s desk

SB 1093 (Schwertner) Relating to facilities included in the electricity supply chain

  • Bill adds water facilities and road to the electricity supply chain map
  • Adds the TxDOT Executive Director to the mapping committee
  • Provides utilities with limited access to the electric supply chain map
  • Requires electric utilities to provide the PUC with geographic boundary information
  • SB 1093 has been signed by the Governor and is now effective

SB 1699 (Johnson) Relating to electricity service in the ERCOT power region, including the participation of aggregated distributed energy resources in the ERCOT market

  • Allows distributed energy resources to be provided in the ERCOT market
  • Additionally, the bill allows for customer participation in demand response programs though retailers who offer them
  • A transmission and distribution utility required to provide an energy efficiency incentive program under this bill may use up to 10% of the budgeted spending for demand response programs
  • The bill passed both chambers and is heading to the Governor’s desk

SB 2627/SJR 93 (Schwertner) Relating to funding mechanisms to support the construction and operation of electric facilities

  • Bill creates the Texas Energy Fund
  • Total $10b in the bill to enhance electric reliability, generation, and resilience
  • $7.2b of which is for for loans and completion bonuses for those who build dispatchable generation in the state
  • $1b of which is for non-ERCOT areas to improve their resiliency
  • SB 2112 was amended on to the bill in the conference committee report which adds $1.8b for the Texas Power Promise Program for distributed generation
  • The loan interest rate is 3% and the loan structure of a 60/40 split
  • SB 2627 was passed by both chambers and is now heading to the Governor’s desk;  the bill will be effective upon passage of its constitutional amendment

Addendum

HB 1158 (Darby) Related to advanced clean energy projects and certain other projects that reduce or eliminate carbon emissions

  • The bill includes the following projects as projects that may be considered for a grant under the new technology implementation grant program:
  • Projects that utilize technology to capture, use, reuse, store, gather, transport, or sequester carbon dioxide emissions from a new or existing petrochemical plant or electric generation facility, including a facility powered by coal, natural gas, hydrogen, or ammonia, for the principal purpose of preventing carbon dioxide from entering or remaining in the atmosphere; and
  • Projects that involve the use of renewable energy to produce hydrogen fuel for use in transportation, agricultural, or industrial processes and result in a reduction of pollutants entering the atmosphere
  • HB 1158 passed the House, but was not set for hearing in the Senate

HB 2262 (Darby) Related to gas utility alternative gas expenses and infrastructure investments

  • HB 2262 seeks to allow gas utilities to blend alternative gasses with natural gas for distribution to homes and businesses and modernize infrastructure by providing for an applicable gas certification process, the designation of a gaseous fuel as an alternative gas, and the recovery of certain related utility costs
  • It also would allow a gas utility to produce hydrogen and recover their costs through ratemaking
  • HB 2262 passed the House, through Senate committee, and was placed on the Senate’s intent calendar, but was taken off on 5/21

HB 2569 (Shaheen) Relating to notice of planned and unplanned service interruptions provided to ERCOT by certain electric generation service providers

  • The bill was placed on the House General Calendar on  5/11, but was not taken up
  • HB 2569 was amended onto HB 1500

HB 3100 (Landgraf) Relating to the creation of a hydrogen infrastructure and vehicle grant program under the Texas emissions reduction plan 

  • The bill was left pending in House committee

HB 3355 (Landgraf) relating to exemption from taxation of facilities, devices or methods used control pollution. Included fuel cells generating electricity using hydrogen derived from coal, biomass, petroleum coke, or solid waste

  • The bill was left pending in House committee

SB 7 (Schwertner) Relating to the reliability of the ERCOT power grid

  • Implements the Performance Credit Mechanism in which power generators would sell credits in exchange for promising to be available to produce power in times when the grid is tight
  • The House added an amendment that sets a net cap of $1b
  • Both chambers appointed conference committee conferees, but no conference committee report was produced
  • Companies that build battery facilities and renewables are excluded from these credits
  • SB 7 was amended on to HB 1500

SB 114 (Menéndez) Relating to the provision of electricity service in the ERCOT power region

  • The bill allows for customer participation in demand response programs though retailers who offer them
  • Customers are entitled to information from their providers when their ERCOT power region issues an emergency alert
  • Establishes ERCOT will create goals to reduce total residential load
  • Bill passed the Senate, but was not taken up in the House after being placed on the calendar on 5/23
  • The bill was amended on to HB 1500, but was removed in conference
  • SB 114 was amended on to SB 1699 

SB 624 (Kolkhorst) Relating to the permitting of renewable energy generation facilities by the Public Utility Commission of Texas; authorizing fees

  • The bill would give PUC oversight/permitting over the placement of wind and solar farms
  • Requires publication of notice for a project and public input via public meetings
  • Bill includes required setbacks of projects
  • The bill passed through the Senate, but was not set for hearing in the House; it was amended on to HB 1500 (the PUC Sunset bill) in the Senate, but was taken off in conference committee

SB 1075 (King) Relating to facilities and construction machinery used to respond to power outages

  • Allows transmission and distribution facilities to own/lease mobile generation to address emergency situations
  • Allows for ownership of the generators through an affiliate
  • A Senate amendment removed the bill’s original stipulation of a 3% cap of total generation of a TDU’s footprint
  • The bill passed the Senate and House committee, but was not placed on the House’s calendar
  • SB 1075 was amended on to HB 1500

SB 1287 (King) Relating to the cost of interconnecting certain electric generation facilities with the ERCOT transmission system

  • Bill aims to address the additional costs to customers based on siting decisions
  • PUC to determine a maximum amount customers have to pay and anything above that has to be paid by the generator company
  • Applies to gas fire, nuclear, geothermal, wind, etc.
  • SB 1287 died by procedural action in the House on 5/22; bill was later amended onto HB 1500

SB 2010 (Schwertner) Relating to required reporting by the wholesale electric market monitor for the ERCOT power region

  • Requires reports from the Independent Market Monitor and the PUC on potential market manipulation violations
  • SB 2010 was passed by both chambers and is heading to the Governor’s desk; the bill also was amended onto HB 1500

SB 2011 (Schwertner) Relating to the authority of the Public Utility Commission of Texas to impose administrative penalties and enter into voluntary mitigation plans; increasing an administrative penalty

  • Allows the PUCT to approve a VMP if it is in the public interest and requires VMPs to be reviewed once every two years
  • If the PUCT determines a plan is no longer in the public’s best interest, either  the PUCT and the entity will modify the plan, or the PUCT will terminate the plan
  • SB 2011 was passed by both chambers and is heading to the Governor’s desk; the bill also was amended onto HB 1500

SB 2012 (Schwertner) Relating to the implementation of a program to meet the reliability needs of the ERCOT power region

  • Caps the cost of the PCM and limits participation to dispatchable generators
  • Bill assigns cost to generators on cost-causation basis and are penalties for those who do not perform
  • All aspects of RTC must start before PCM implemented; real time co-optimization
  • Will be a legislative oversight committee; safety net kicks in after 4 years of implementation of PCM if still lack of dispatchable can administer RFP for the build of new
  • Includes voluntary mitigation requirements and sets a firming requirement for load
  • PUC is authorized to continue reliability program is on aspect of reliability is not met
  • Died by procedural action in the House; SB 2012 was amended on to HB 1500

SB 2014 (King) Relating to the legislature’s goals for renewable electric generating capacity

  • Bill takes away the mandatory part of the State Renewable Credit program, but leaves the voluntary part of the program in place
  • ERCOT will continue to monitor the exchange program
  • Left pending in House committee; SB 2014 was amended on to HB 1500

SB 2015 (King) Relating to the legislature’s goals for electric generation capacity in this state

  • All generation built going forward 50% of all new generation needs to be dispatchable – which only includes generation not affected by weather; includes gas fired, batteries, geothermal, hydrogen 
  • The bill passed the Senate, but did not get a hearing in the House